Mercantilism theory has it that a nation should sell more than it buys from other nations in order to increase its wealth.
Colonies sent raw materials back to mother country where these materials were manufactured to produce goods, these goods were sent back to the colonies to be sold at a higher price,thus, increasing mother country´s wealth by selling more that it bought.
What is more, it was forbidden for colonies to sell materials to other than Mother country, making them economically dependent.
This is basically how mercantilism worked during colonial times
According to the mercantilist theories, the colonies were to provide markets for the mother country. The colonies were seen as markets for the mother country where the manufactured goods that were produced in the mother country were then sold to the colonists at very high prices. In addition, the colonies provided the mother country with raw natural resources, which were then processed and manufactured as goods in the mother country. American colonists didn't agree with the idea of selling cheap natural resources and buying very expensive manufactured goods to the British Empire. This was one of the colonists' complaints that led to the American Revolution.
